Congressional panel begins work on energy policy reform

06 April 2005 19:29  [Source: ICIS news]

WASHINGTON (CNI)--The House Energy and Commerce Committee began work Wednesday on broad legislation intended to encourage greater domestic production of natural gas and oil and reduce US dependence on foreign sources of energy.

 

Chairman Joe Barton (Republican-Texas) said his committee would spend several days considering amendments to a draft energy bill that is similar to comprehensive legislation that twice passed the House of Representatives a year ago, but stalled in the Senate.

 

One of the new provisions in the bill would clarify that the Federal Energy Regulatory Commission (FERC) has the legal authority to override state and local opposition to new import terminals for liquefied natural gas (LNG).

 

The legislation would require FERC to consult with state and local agencies on safety matters, but would give federal regulators the final authority to approve LNG permits.

 

LNG's share of the US natural gas market is expected to grow from less than 3% today to more than 21% by 2025, according to an Energy Department forecast.

 

Representative John Dingell of Michigan, the committee's ranking Democrat, sharply criticized the Republican-crafted bill, charging it would "harm the environment, hurt consumers and cost taxpayers a bundle of money."

 

Barton said it is essential that Congress address declining US gas and oil production. "Daily life in America requires energy that is abundant, affordable and reliable," he remarked.

 

The legislation once again includes a controversial measure that would protect manufacturers of methyl tertiary butyl ether (MTBE) from defective product lawsuits. The provision would also give refiners until the end of 2014 to phase out MTBE and switch to other octane boosting gasoline additives.

 

Democrats said they would offer amendments to strip the MTBE language from the bill.

 

Although the House Resources Committee has jurisdiction over separate legislation to open the Arctic National Wildlife Refuge (ANWR) in Alaska to oil and gas production, that measure is expected to be added to the comprehensive energy package before it reaches the House floor.

 

The Senate voted 51-49 last month to lease ANWR for drilling after many years of opposition.

By: Glenn Hess
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly